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Closing Out the Summer Rules

The Loft Board met on October 4th and voted through the final language on eight rules. Two rules, 2-12 Rent Adjustments and 2-11.1 Fines, are being held until Rule 2-01 is complete.

They will probably release Rule 2-01 for public comment in the next few weeks, for a hearing 60 days following that. This rule defines all the most basic processes of the Loft Law – including the Narrative Statement Process and what happens when a landlord achieves a “no work” permit – so it’s crucial that tenants read this rule and testify at the hearings. We will hold a teach-in to help everyone understand it.

(If you are curious what this means about the deadline for applying: once all the other rules are finished, they publish Rule 1-06.1 which starts the clock ticking. Looks like that will happen in January or February, This happened September 11, 2013, so the final deadline will be in July or August March 11, 2014.)

2-02 Harassment – Board Approved unanimously

No changes. However, the harassment fines will be raised in Rule 2-11.1. And the Board staff seemed to agree that frivolous lawsuits and collections claims could already be used as evidence of harassment.

2-10 Sale of Rights – Board approved unanimously

Reverted the restriction on sale of rights where there is a finding of harassment. Only the unit concerned can not be bought out. Changes the wording from “building” to “units”.

They will increase the fine for failing to timely file a Sale of Rights so that landlords are less likely to surprise tenants who thought they had rent stabilization.

Final changes: expressly listing steam, gas, and electricity as the only use-based escalators, and defining garbage as its own category of escalator that will go away once the city starts picking it up. All other escalators get folded into the Base Rent. Use-based escalators need to be based on the actual cost to the landlord.

2-07 Sale of Improvements – Board approved unanimously

No changes.

2-09 Subletting – Board approved unanimously

Reverting the change to subletting restrictions so that the restrictions only take place on the date of the rule. (Otherwise prime tenants would be in automatic violation of a rule that wasn’t yet ratified.)

The Board was not willing to define “landlord consent” more precisely because there are good precedents in case law – for example, payment of rent directly to the landlord, and asking the landlord for repairs, have been accepted as proof of consent in the past.